Air China Q1 Net Profit Down 5.7 Percent

Air China, which posted bigger-than-expected 2008 losses, returned to profit in the first quarter of 2009, helped by an exceptional gain and lower fuel costs.

The country's flag carrier posted a net profit of CNY981.2 million yuan (USD$143.6 million) in the three months ended March, down 5.7 percent from the same period last year, based on Chinese accounting standards.

The net included a total CNY655 million refund and exemption relating to CAAC Infrastructure Development Fund and fuel hedging losses of CNY989 million, the company said in a statement on late Thursday.

But jet fuel costs dropped by CNY1.65 billion during the reported period.

Air China also reported a loss of CNY9.26 billion in 2008, under international accounting standards, due to large fuel hedging losses and slowing demand amid the global financial crisis.

The loss was worse than an average forecast of a 5.58 billion yuan shortfall and compared with a restated profit of 4.05 billion yuan in 2007.